With a growing spotlight on the drawbacks of the FTC’s proposed non-compete ban, the FTC has scheduled a public forum on Thursday, February 16, from 12:00 – 3:00 p.m., EST to examine its proposed rule. As it stands, the proposed rule would prohibit employers from imposing noncompete clauses on their workers.
The public forum will be webcast on the FTC’s website and then posted online. To learn more about this forum, click here.
The FTC asserts that noncompete clauses hurt workers and harm competition by restricting them from pursuing better employment opportunities. Opponents to the non-compete ban in the home care arena claim that the proposed rule could become a huge administrative headache, especially if noncompete clauses are included in broader employee agreements. Under the proposed rule, noncompete clauses must be removed from employee agreements and notice of the change must be provided to current and former employees in writing—full-time, part-time, and contract worker, as well as unpaid interns and volunteers.
In a separate move, the U.S. Chamber of Commerce is conducting a survey to gather more information on how employers use noncompete clauses. All information gathered from the survey will be kept anonymous and will not be transmitted to the FTC. To complete the survey, click here.
HCAOA will continue to monitor this rulemaking and it will be discussed at the Policy Committee’s next meeting.